Hims buys Eucalyptus for up to $1.15B

Hims & Hers said on February 19 that it agreed to buy Eucalyptus for up to $1.15 billion, its biggest move yet outside the United States. (investors.hims.com) The target is an Australia-founded telehealth company with operations in Australia, the United Kingdom and Germany, plus newer businesses in Japan and Canada. Hims said the deal should close in mid-2026, pending regulatory approvals. (investors.hims.com) (fiercehealthcare.com) Hims said it expects to pay about $240 million in cash at closing. The rest of the purchase price is split between guaranteed deferred payments over 18 months and earnouts tied to financial targets through early 2029. (fiercehealthcare.com) (mobihealthnews.com) Eucalyptus brings more than 775,000 customers and an annual revenue run-rate above $450 million, according to Hims. Its brands include Juniper in women’s weight loss, Pilot in men’s health, Kin in reproductive care and Software in dermatology. (fiercehealthcare.com) (mobihealthnews.com) The acquisition adds scale in markets where Hims already had footholds and opens two new ones. Hims said Eucalyptus will help it enter Australia and Japan and strengthen its position in the U.K., Germany and Canada. (investors.hims.com) (mobihealthnews.com) The company is also buying local operating know-how, not just customers. Eucalyptus chief executive Tim Doyle is set to become Hims senior vice president of international after the deal closes, and Hims said Eucalyptus’s brands will transition into Hims & Hers over time. (fiercehealthcare.com) (mobihealthnews.com) The timing follows a turbulent stretch in Hims’s weight-loss business. In February, Novo Nordisk sued Hims over compounded semaglutide marketing, and industry coverage tied the Eucalyptus deal to Hims’s effort to diversify beyond the United States as regulators scrutinize compounded-drug advertising. (hlth.com) (pharmaphorum.com) Hims said the structure preserves balance-sheet flexibility because it can fund most of the transaction with cash on hand and U.S. operating cash flow, and use cash or stock for most deferred and earnout payments. (fiercehealthcare.com) (mobihealthnews.com) For Hims, the bet is that the playbook it built in the U.S. can travel faster with an established operator already serving hundreds of thousands of patients abroad. (investors.hims.com) (fiercehealthcare.com)